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CONSTITUTION 

AND 

BY-LAWS 

OF  THE 

WASHINGTON 
STOCK  EXCHANGE 

ADOPTED   NOVEMBER    14,  1890 
REVISED  TO  SEPTEMBER  I.  1907 


Washington,  D.  C. 

Press  of  W.  F.  Roberts  Company 

1907 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

Microsoft  Corporation 


http://www.archive.org/details/constitutionandbOOwashiala 


THOMAS    L.  HUME,  President 

R.  H.  LYNN,  Vice-President 

BENJ.  WOODRUFF,  Secretary 

BRICE    J.  MOSES,  Treasurer 


(Snfonttng  (Commute? 

WILLIAM  A.  MEARNS,  Chairman 
CHARLES  J.  BELL  JAMES  M.  GREEN 

G.  BOWIE  CHIPMAN       THOMAS  L.  HUME 
WM.  J.  FLATHER  CHAS.  P.  WILLIAMS 


MEMBERS  OF 

Haflljmijtmt  Btotk  fExrlfattrj* 


Bell,  Chas.  J. 
Chipman,  G.  B. 
Casilear,  R.  A. 
Cottrell,  E.  B. 
Crane,  Augustus,  Jr. 
dulaney,  h.  rozier 
Easterday,  Geo  J. 
Flathhr,  Wm.  J. 
Fraser,  Daniel 
Glover,  Chas.  C. 
Green,  James  M. 
Hibbs,  Wm.  B. 
Hieston,  Walter 
Henry,  J.  Wm. 
Hendrick,  J.  T. 
Halstead,  Griffin 
Huyck,  J.  V.  N. 
Hurt,  Henry 
Howard,  George 
Hume,  Thos  L. 


Jacobsen,  Charles 
Jenkins,  Ralph 
Jones,  Thomas  R. 
Johnson,  O.  P. 
Lynn,  R.  H. 
Mearns,  Wm.  A. 
Moses,  Brice  J. 
Morrison,  L.  W. 
Norment,  C.  F. 
Parris,  A.  K. 
Tarker,  E.  S. 
Stevens,  Fred.  C. 
Stellwagen,  E.  J. 
Weber,  Geo.  W. 
Wilkins,  Robert 
Whitwell,  S.  N. 
Williams,  Chas.  P. 
Woodruff,  Benj. 
Whitford,  E.  O. 


(Eflttstttttium 


ARTICLE  I 
Title 

Section  i.  The  title  of  this  Association  shall 
be  The  Washington  Stock  Exchange. 

Sec.  2.  The  membership  of  the  Exchange 
shall  be  limited  to  forty. 

ARTICLE  II 
Officers 

Section  i.  The  government  of  the  Exchange 
shall  be  vested  in  a  Governing  Committee  com- 
posed of  the  President  of  the  Exchange  and 
six  members  elected  in  the  manner  hereinafter 
provided.  The  members  of  the  Governing 
Committee,  the  President,  the  Vice  President, 
the  Secretary  and  Treasurer  shall  be  the  officers 
of  the  Exchange. 

SEC  2.  The  Governing  Committee  shall  be 
divided  into  three  classes,  each  class  consisting 
of  two  members,  as  follows  :  first  class,  to  hold 
office  for  one  year  ;  second  class,  for  two  years; 
and  third  class  for  three  years. 


8  lUuiilmutfmt  &tatU  txduumr 

ARTICLE  III 
Election 

Section  i.  The  election  for  officers  of  the 
Exchange  shall  be  held  on  the  third  Wednesday 
in  November  of  each  year,  at  which  time  there 
shall  be  elected  by  ballot  a  President,  Vice 
President,  Secretary  and  Treasurer  to  serve  for 
the  ensuing  year  or  until  their  successors  are 
elected  ;  also  two  members  of  the  Governing 
Committee  to  fill  the  vacancies  occasioned  by 
the  outgoing  class  and  to  hold  office  for  the 
three  years  next  ensuing,  and  also  members 
to  fill  any  vacancy  or  vacancies  in  the  other 
classes  for  the  unexpired  term. 

SEC.  2.  In  case  a  vacancy  shall  occur  in  the 
office  of  President,  Vice  President,  Secretary  or 
Treasurer  a  new  election  by  ballot  shall  be  held 
after  five  days'  notice  to  fill  such  vacancy  for 
the  unexpired  term. 

SEC.  3.  All  vacancies  occuriug  in  the  Govern- 
ing Committee  shall  be  filled  by  said  Committee 
until  the  ensuing  annual  election. 

ARTICLE  IV 

Duties  of  the  President 

It  shall  be  the  duty  of  the  President  to  preside 
at  all  meetings  of  the  Board,  to  maintain  order, 
and  to  enforce  the  rules.  He  shall  decide  all 
questions  of  order,  but  an  appeal  may  be  made 
to  the  Board,  when  a  majority  of  the  members 
present  shall  decide  the  question.  In  the 
absence  of  or  at  the  request  of  the  President, 
the  Vice  President  or   Chairman   of  the  Gov- 


<Imu.it  t  nt  uui 


erning  Committee,  in  the  order  named,  shall 
assume  the  function  of  the  office  of  President. 
In  event  of  the  absence  of  these  three  officers, 
the  Exchange  shall  then  elect  a  President  pro 
tempore. 


ARTICLE   V 

Duties  of  the  Secretary 

It  shall  be  the  duty  of  the  Secretary  to  take 
care  of  the  books  and  papers,  to  make  a  full  and 
faithful  record  of  the  transactions  at  the  Board, 
which  record  shall  be  considered  as  binding  on 
all  members;  to  record  in  a  book  of  minutes  the 
proceedings  of  the  Board  ;  to  furnish  the  mem- 
bers, upon  application,  with  transcripts  of  their 
operations  ;  to  act  as  the  Secretary  to  the  Gov- 
erning Committee  ;  and  to  discharge  such  other 
duties  as  the  Governing  Committee  may  regard 
as  properly  pertaining  to  his  office. 


ARTICLE  VI 

Duties  of  the  Treasurer 

It  shall  be  the  duty  of  the  Treasurer  to  receive 
and  take  charge  of  all  moneys,  collect  all  fines, 
dues  and  assessments,  pay  all  bills  after  being 
approved  by  the  Governing  Committee,  keep  a 
correct  account  of  the  funds,  and  render  a  state- 
ment on  the  third  Wednesday  of  November  in 
each  year,  and  at  such  other  times  as  the  Gov- 
erning Committee  may  require. 


1 0  IHaiilutmhut  &tork  txduumr 

ARTICLE  VII 
Duties  and  Powers  of  Governing  Committee 

Section  i.  It  shall  be  the  duty  of  the  Gov- 
erning Committee  to  investigate  and  decide  all 
claims  and  matters  of  difference  between  mem- 
bers of  the  Exchange  which  may  be  brought 
before  them  and  arising  from  transactions  in 
Bonds,  Stocks,  or  other  securities  made  in  the 
Board,  and  their  decisions  shall  be  final  in  all 
cases. 

SEC.  2.  It  shall  be  the  duty  of  said  Committee 
to  investigate  every  case  of  insolvency  imme- 
diately after  the  announcement  thereof  to  the 
Exchange. 

Sec.  3.  It  shall  be  the  duty  of  this  Committee 
to  adjudicate  all  disputed  questions  as  to  the 
regularity  of  Stock  Certificates  and  Bonds  dealt 
in  on  the  Exchange. 

Sec.  4.  It  shall  be  the  duty  of  this  Committee 
to  fix  the  rates  of  commission  on  all  securities 
listed  and  dealt  in  on  the  Exchange ;  also  to 
decide  as  to  what  securities  may  be  listed. 

SEC.  5.  All  applications  for  membership  and 
applications  of  suspended  members  for  reinstate- 
ment of  their  privileges  shall  be  referred  to  the 
Governing  Committee.  A  majority  of  the  entire 
Committee  approving,  the  applicant  shall 
be  declared  elected  to  membership  in  the 
Exchange  or  reinstated  in  his  privileges,  as  the 
case  may  be. 

SEC.  6.  The  Chairman  of  the  Governing 
Committee  shall  inform  the  Secretary  of  the 
Exchange  of  the  admission  or  reinstatement  of 
any  applicant,  and  announcement  thereof  shall 
be  made  to  the  Exchange. 


(UottBtifottmt  1 1 

Sec.  7.  It  shall  be  the  duty  of  this  Committee 
to  consider  and  dispose  of  all  applications  for 
transfer  of  membership. 

Sec.  8.  The  Governing  Committee  shall  have 
power  to  determine  the  manner  and  form  by 
which  its  proceedings  shall  be  conducted  and 
shall  make  such  regulations  for  their  govern- 
ment as  they  shall  deem  proper  ;  to  at  any  time 
require  of  all  officers  or  appointees  of  the 
Exchange  a  good  and  sufficient  bond  to  secure 
the  faithful  performance  of  their  duty  ;  to  try 
all  charges  against  members  for  violating  the 
laws  of  the  Exchange  and  to  fine  or  suspend, 
by  a  majority  vote  of  the  entire  Committee, 
such  members  as  may  be  found  guilty  thereof ; 
and  the  Governing  Committee  shall  be  vested 
with  all  powers  necessary  for  the  government 
of  the  Exchange. 

SEC.  9.  The  Governing  Committee,  by  a  two- 
thirds  vote  of  the  entire  Committee  shall  have 
the  power  to  expel  any  member  of  the  Exchange 
found  guilty  of  dishonorable  conduct,  or  who 
may  violate  any  of  the  laws  and  regulations  of 
the  Exchange. 

SEC  10.  The  Governing  Committee  shall 
have  the  right  to  remove  any  of  its  members 
for  good  and  sufficient  cause,  of  which  it  shall 
be  the  sole  judge,  by  a  majority  vote  of  the 
whole  Committtee. 

Sec.  11.  No  member  of  the  Governing  Com- 
mittee shall  participate  in  the  adjudication  of 
any  case  in  which  he  is  personally  interested. 

SEC.  12.  The  Governing  Committee  shall  hold 
a  meeting  on  the  second  Monday  in  each  and 
every  month  for  the  transaction  of  such  business 


12  111 niili itmhui  g>tnrk  txdmtmr 

as  may  be  brought  before  them.  A  majority 
of  the  Com mittee  shall  be  necessary  to  consti- 
tute a  quorum. 

Sec.  13.  Any  member  of  the  Governing  Com- 
mittee who,  unless  excused  by  the  Chairman, 
shall  absent  himself  from  the  meeting  of  the 
Committee  during  three  consecutive  regular 
meetings,  may,  by  a  majority  vote  of  the  whole 
Committee  at  any  regular  meeting  thereafter, 
be  declared  no  longer  a  member  thereof. 

ARTICLE  VIII 
Membership 

Section  i.  Any  member  desiring  to  sell  his 
seat  on  the  Exchange  shall  notify  the  Secretary 
in  writing,  placing  his  membership  in  the  said 
Secretary's  hands,  accompanied  by  an  assign- 
ment thereof,  for  sale.  When  such  seat  shall  be 
sold,  the  purchase  money  paid  to  the  Secretary, 
and  the  purchaser,  after  such  payment,  duly 
elected,  as  hereinbefore  provided,  the  said  mem- 
bership shall  be  vested  in  the  newly  elected 
member. 

SEC.  2.  A  fee  of  $50.00  shall  be  paid  by  the 
retiring  member  upon  his  transferring  his  seat 
and  the  same  credited  to  the  Insurance  Fund. 

SEC.  3.  The  name  of  any  applicant  for  mem- 
bership shall  be  posted,  together  with  the  name 
of  the  retiring  member,  by  the  Secretary  in  the 
Exchange,  for  one  week  before  action  on  the 
application  shall  be  taken  by  the  Governing 
Committee. 

SBC.  4.  In  no  case  shall  any  transfer  of  mem- 
bership be  permitted  until  all  dues  to  the  Stock 
Exchange  shall  have  been  paid  in  full,  and  all 


(Ztanstttutton  1 3 

outstanding  contracts  shall  have  been  com- 
pleted, said  dues  being  hereby  declared  a  prior 
lien  upon  the  proceeds,  to  be  satisfied  in  full, 
before  any  distribution  thereof  shall  be  made. 

Sec.  5.  When  a  member  dies,  his  member- 
ship may  be  disposed  of  by  the  Governing 
Committee ;  and  after  paying  the  claims  of  the 
Exchange,  as  allowed  by  said  Committee,  it 
shall  pay  any  balance  to  the  legal  representa- 
tives of  the  deceased. 

SEC.  6.  In  every  case  where  a  member  is 
deprived  of  his  membership,  or  declared  ineligi- 
ble for  reinstatement  by  the  Governing  Com- 
mittee, his  membership  may  be  disposed  of 
forthwith  for  his  benefit  by  the  Governing 
Committee,  but  all  claims  of  members  of  the 
Exchange  against  said  membership,  as  allowed 
by  said.  Governing  Committee,  shall  be  first 
paid  out  of  the  proceeds  thereof. 

SEC.  7.  At  the  annual  election  of  officers  and 
at  any  meeting  of  the  members  of  the  Exchange 
all  votes  must  be  in  person,  the  use  of  proxies 
not  being  permitted. 

ARTICLE  IX 

Dues  and  Assessments 

Section  i.  The  Governing  Committee,  at  a 
meeting  held  in  November  of  each  year,  shall 
report  an  equal  assessment  against  each  mem- 
ber for  annual  expenses  ;  which  shall  become 
immediately  payable.  The  Secretary  of  the 
Exchange  shall  be  exempt  from  the  payment 
of  the  Annual  Dues,  but  shall  be  subject  to  all 
others  dues  or  assessments. 


1 4  ttlar.lmujtmt  &tark  txrlutuy r 

SEC.  2.  If  the  said  assessment  or  other  dues 
shall  not  have  been  paid  within  the  period  of 
two  months,  the  name  of  said  delinquent  shall 
be  posted  and  reported  to  the  Governing  Com- 
mittee, by  whom  he  may  be  suspended  from 
membership  until  the  said  dues  are  paid,  and  if 
not  paid  at  the  end  of  six  months  the  seat  of 
said  member  may  be  sold. 

ARTICLE  X 

Fictitious  Sales 

No  fictitious  sale  shall  be  made.  Any  mem- 
ber contravening  this  Section  shall,  upon  con- 
viction, be  suspended  for  such  period,  not 
exceeding  twelve  months,  as  a  majority  of 
the  Governing  Committee  present,  at  a  meet- 
ing thereof  may  determine. 

ARTICLE  XI 
Insurance 

Section  i.  Upon  the  death  of  any  member 
of  the  Exchange  there  shall  be  levied  and 
assessed  against  each  seat  the  sum  of  Fifty 
Dollars  ($50.00),  which  shall  thereupon  become 
due  and  be  collected  as  other  fines  and  dues 
are  or  may  be  collected. 

Sec.  2.  The  faith  of  The  Washington 
Stock  Exchange  is  hereby  pledged  to  pay 
within  three  months  after  proof  of  death  of 
any  member,  to  his  widow,  if  he  leaves  one,  or 
to  his  heirs  at  law,  if  he  leaves  no  widow, 
unless  in  either  case  he   shall   have  otherwise 


GlmtBiUutton  1 5 

directed  in  writing,  by  a  paper  filed  with  the 
Secretary,  the  sum  of  Two  Thousand  Dollars 
($2,000),  as  a  gratuity,  free  from  any  debts, 
charges  or  demands  whatever. 

ARTICLE  XII 

Expulsion  0/  Members 

An  accusation,  charging  any  member  before 
the  Governing  Committee  of  committing  an 
offense  or  violating  the  laws  or  regulations  of 
the  Exchange,  shall  be  in  writing,  and  shall 
specify  the  charge  or  charges  against  such 
member  with  reasonable  detail,  and  shall  be 
signed  by  the  person  or  persons  making  the 
charge  or  charges.  A  copy  of  such  charge  or 
charges  shall  be  served  upon  the  accused  mem- 
ber, either  personally  or  by  leaving  the  same  at 
his  office  address  during  business  hours,  who 
shall  have  at  least  fifteen  days  to  answer  the 
same,  or  such  further  time  as  the  Governing 
Committee  in  its  discretion  may  deem  proper. 
The  answer  shall  be  in  writing,  and  signed  by 
the  accused  member,  and  shall  be  filed  with 
the  Secretary  of  the  Exchange.  After  the 
time  has  elapsed  for  the  answer  to  be  made, 
or  upon  the  answer  being  filed,  the  Governing 
Committee  shall  set  a  day  for  the  hearing  of  the 
charge  or  charges  and  a  written  notice  of  the 
time  and  place  of  such  hearing  shall  be  served 
upon  the  accused  personally,  or  by  leaving  the 
same  at  his  office  address  during  business  hours, 
at  least  five  days,  or  such  further  time  as  the 
Governing  Committee  may  in  its  discretion 
deem  proper,  before  the  date  of  such  hearing. 


1 6  Waahington  S»tork  fExrijangr 

If  the  accused  shall  refuse  or  neglect  to  make 
answer,  as  hereinbefore  provided,  then  the 
Governing  Committee  may  proceed  to  hear 
and  act  upon  the  charge  or  charges,  the  same 
as  if  the  accused  had  made  his  answer. 

Upon  the  hearing  of  such  charge  or  charges, 
the  accused  shall  be  entitled  to  be  present,  to 
examine  and  cross-examine  all  the  witnesses 
produced  before  the  Committee,  and  to  present 
such  defences  or  explanations  as  he  may  deem 
proper.  After  hearing  all  of  the  witnesses,  and 
the  party  accused,  if  he  desires  to  be  heard,  the 
Governing  Committee  shall  determine  whether 
such  party  has  been  guilty  of  the  offense  or 
offenses  charged  against  him  If  it  determine 
that  the  offender  is  guilty,  the  Governing  Com- 
mittee shall  expel  such  member,  or  suspend 
him  as  the  case  may  be,  which  result  shall  be 
announced  to  the  Exchange  by  the  President, 
and  a  written  notice  thereof  served  upon  such 
member  in  the  manner  hereinbefore  provided. 
The  finding  of  the  Governing  Committee  shall 
be  final  and  conclusive. 

ARTICLE  XIII 

Alterations  of  the  Constitution 

All  motions  for  altering  the  Constitution  shall 
be  in  writing,  and  be  referred  to  the  Governing 
Committee,  who  shall  make  a  written  report  to 
the  Board  within  ten  days.  On  the  third  day 
after  such  a  report  a  vote  shall  be  taken,  and  a 
two-thirds  vote  of  the  members  present  shall  be 
necessary  to  make  the  proposed  alterations  or 
amendments. 


CEnttatttutton  1 7 

ARTICLE  XIV 

Signing  the  Constitution 

Every  member  now  on  the  rolls  shall  sign  the 
Constitution  within  thirty  days,  and  all  new 
members  shall  sign  the  same  within  thirty  days 
after  election,  and  by  so  doing  pledge  them- 
selves to  abide  by  the  same  and  also  by  all 
By-Laws,  rules  and  regulations  which  now  exist 
or  may  hereafter  be  adopted. 


1 8  Haaljutgtatt  &tnrk  lExrljatuj? 


Bjj-Hatofl  19 


ARTICLE  I 

These  By-Laws  shall  only  apply  to,  and 
govern,  transactions  made  upon  the  Exchange 
in  accordance  with  the  following  articles  : 

ARTICLE  II 
Trading 

Section  i.  All  offers  to  buy  or  sell  unaccom- 
panied by  any  specific  amount  shall  be  regarded 
as  for  a  quotation  as  defined  in  Article  III. 

Sec.  2.  Offers  to  buy  or  sell  specific  lots  may 
be  made  at  the  same  time  with  quotation  lots, 
but  no  offer  to  buy  or  sell  a  specific  lot  shall 
take  precedence  of  any  offer  to  buy  or  sell  a 
different  lot. 

Sec.  3.  The  member  first  bidding  for  or 
offering  to  sell  a  quotation  lot  at  any  price 
shall  be  entitled  to  the  floor  at  that  price.  In 
the  same  way  the  first  offer  to  buy  or  sell  a 
specific  amount  shall  have  precedence  over  any 
other  offers  to  buy  or  sell  the  same  amount. 

Sec.  4.  The  sale  of  a  quotation  lot  shall 
cancel  all  previous  bids  and  offers,  including 
bids  and  offers  for  specific  amounts,  but  the 
sale  of  an  amount  greater  or  less  than  a  quota- 
tion shall  not  cancel  the  bid  or  offers  previously 
made  for  quotation  lots. 

SEC.  5.  Any  member  buying  or  selling  a 
quotation  lot  of  his  own  or  a  customer's  Stock, 


20  Waafyingtrnt  S»tork  iExrliangr 

shall  not  be  entitled  to  the  floor,  at  a  price 
previously  bid  by  another  member  for  a  quota- 
tion lot,  and  in  no  case  shall  such  trades 
cancel  previous  bids  and  offers  made  by  other 
members. 

SEC  6.  The  Secretary's  record  of  the  daily 
trading  between  members  must  govern  all  dis- 
putes between  members  and  not  the  Sales  List. 

SEC.  7.  When  more  than  a  quotation  lot  is 
offered  "or  any  part"  it  is  understood  that 
quotation  lots  only  are  offered  in  reduction  of 
the  whole. 

SEC.  8.  Sales  made  "seller  opening  of  books" 
shall  be  construed  to  be  a  positive  contract  not 
to  deliver  at  any  previous  date. 

Contracts  for  more  than  three  days  to  buy  or 
sell  securities  must  be  in  writing  in  order  to 
receive  the  recognition  of  the  Board  in  case  of 
dispute. 

SEC.  9.  No  member  shall  buy  or  sell  his  own, 
or  a  customer's,  stocks  or  bonds  without  first 
notifying  the  Exchange  of  his  intention  so  to  do 
(in  order  that  all  may  have  an  equal  chance  for 
taking  advantage  of  the  bid  or  asked  prices  so 
made)  unless  the  bid  and  asked  prices  are  but 
yi  of  one  per  cent  apart,  in  which  case  he  may 
take  his  own  stocks  without  formal  notice. 

No  transaction  shall  be  made  by  a  member, 
with  himself,  under  this  rule,  for  an  amount 
greater  than  a  quotation  lot,  without  first 
supplying  all  bids  for  quotation  lots,  or  mul- 
tiples thereof,  which  shall  not  exceed  the 
amount  offered,  and  which  equal  the  price  at 
which  he  proposes  selling  the  larger  amount. 


SEC.  io.  Registered  bonds  must  be  specified 
as  sucb  when  sold.  If  no  mention  is  made  as 
to  the  character  of  bonds  traded  in,  it  shall  be 
assumed  that  coupon  bonds  are  meant. 

Sec.  ii.  After  the  call  of  the  entire  list  the 
Chairman  shall  revert  to  any  listed  security 
upon  request  of  a  member,  but  any  bids  or  offers 
then  made  shall  not  change  the  quotation  pre- 
viously established  on  the  regular  call,  and  any 
transactions  made  therein  shall  be  recorded  by 
the  Secretary  and  printed  on  the  sales  list 
accompanied  by  the  words  after  call. 

SEC.  12.  After  the  Chairman  shall  have 
reverted  to  such  securities  as  any  member  may 
desire  he  shall  formally  announce  the  con- 
clusion of  the  call,  and  no  transactions  made 
thereafter  shall  be  recorded  on  the  list,  nor 
shall  such  transactions  in  any  way  receive  the 
official  cognizance  of  the  Exchange  nor  protec- 
tion under  these  By-Laws. 

Sec.  13.  The  trading  After  Call  shall  be  sub- 
ject to  the  rules  governing  trading  on  the 
Regular  Call.  The  member  first  bidding  for  or 
offering  to  sell  any  amount  shall  be  entitled  to 
the  floor  for  that  amount,  at  the  price  named 
until  the  call  is  closed,  or  until  the  offering  is 
withdrawn  or  otherwise  cancelled. 

SEC  14.  The  Secretary's  record  of  trans- 
actions made  on  the  regular  call  shall  be  read 
for  verification  immediately  after  the  regular 
call,  and  the  record  of  transactions  made 
"After  Call"  shall  be  read  immediately  after 
call,  whereupon  the  record  shall  be  closed. 


22  Baahtngton  &»tork  Exrlfattg? 

ARTICLE  III 
Quotations 

Section  i.  A  bid  or  asking  price  for  one  bond 
of  $1,000  par  value  or  for  two  bonds  of  $500  each 
par  value  shall  be  necessary  to  make  a  quotation. 

Sec.  2.  Bonds  of  less  than  $500  each  par  value 
shall  be  bought  and  sold  as  "Small  Bonds,"  and 
the  same  cannot  be  used  in  any  amounts  to 
make  either  a  bid  or  asking  price. 

Sec.  3.  All  bonds  shall  be  quoted  ex-interest 
and  all  stocks  ex-dividend  on  the  last  delivery 
day  prior  to  the  closing  of  the  books. 

Sec.  4.  All  stocks  and  bonds  shall  be  bought, 
sold  and  quoted  on  a  basis  of  dollars  and  not  on 
percentages  of  par  value. 

ARTICLE  IV 
Commissions 

Section  i.  Commissions  on  all  bonds  shall 
be  at  the  rate  of  %  of  one  per  cent,  or  $2.50  per 
thousand  dollars  of  par  value,  except  on  United 
States  bonds  and  D.  C.  3-65's,  the  commission 
on  which  shall  be  y%  of  one  per  cent,  or  $1.25 
per  thousand  of  par  value. 

Sec.  2.  Commissions  on  all  stocks  selling 
under  $5.00  per  share  shall  be  at  the  rate  of 
3^c.  per  share.  On  all  stocks  selling  at  I5.00 
and  under  $10.00  per  share,  6^c.  per  share. 
On  all  stocks  selling  at  $10.00  per  share  and 
under  $50.00  per  share  I2j^c.  per  share.  On 
nil  stocks  selling  at  $50.00  per  share  and  under 
$[50.00  per  share  25c.  per  share.  On  all  stocks 
selling  at  $150.00  per  share  and  over,  50c.  per 
share. 

Sec.  3.  Commissions  shall  be  charged  and 
paid  under  all  circumstances  and  upon  all  trans- 


Hg-iCattiB  23 

actions,  both  purchases  and  sales,  or  upon  con- 
tracts for  the  receipt  or  delivery  of  securities, 
unless  such  transactions  or  contracts  shall  have 
been  made  for  account  of  the  firm  of  which  the 
broker  is  a  member.  In  case  one  member  of 
the  Board  buys  or  sells  through  another  mem- 
ber, not  a  member  of  his  firm,  he  shall  charge 
one-fourth  the  regular  commission  allowed  in 
Sections  i  and  2. 

SEC.  4.  Commissions  shall  be,  in  all  cases, 
strictly  in  accordance  with  Sections  1  and  2  of 
this  Article,  and  the  rates  prescribed  therein 
shall  be  the  lowest  commission  that  may  be 
charged  by  any  member  of  the  Exchange, 
except  in  cases  hereinbefore  specified,  and  shall 
be  absolutely  net  and  free  from  all  or  any 
rebate,  return,  discount  or  allowance  in  any 
shape  or  manner  whatever,  or  by  any  method 
or  arrangement,  direct  or  indirect.  And  no 
bonus,  percentage  or  portion  of  the  com- 
mission  so  established  shall  be  given,  paid  or 
allowed,  directly  or  indirectly,  to  any  clerk  or 
person  for  business  sought  or  procured  for  any 
member  of  the  Exchange. 

Sec.  5.  Members  may  divide  commissions 
with  members  of  other  Exchanges,  provided 
that  such  division  is  allowed  by  the  said 
Exchange  to  them. 

ARTICLE  V 
Deliveries 
Section  i.  Deliveries  of  stock  and  bonds  sold 
in  the  regular  way  shall   be  made  to  the  pur- 
chaser at  his  recoguized  place  of  business  on  the 


24  Maalfingtmi  &tnrk  lExrhaitgr 

next  succeeding  business  day  before  2  o'clock, 
unless  it  shall  fall  on  Saturday,  in  which  case  it 
shall  be  the  next  business  day. 

SEC.  2.  In  case  of  the  failure  of  any  seller  to 
make  a  good  delivery  of  the  securities  sold,  or 
the  failure  of  any  purchaser  to  pay  for  the 
securities  bought  when  the  same  are  regularly 
tendered  to  him  according  to  rule  or  agreement, 
the  party  so  failing  may  be  reported  to  the 
President  by  the  other  contracting  member,  and 
the  President  on  such  notification  shall,  at  the 
first  regular  call  of  the  list  thereafter,  sell  out 
or  buy  in,  as  the  case  may  be,  the  stock  or 
bonds  involved  in  the  transactions,  for  the 
account  and  risk  of  the  delinquent. 

Sec.  3.  Any  member  entitled  by  virtue  of 
Section  2  to  report  a  failure  to  complete  a  con- 
tract may  extend  the  time  for  completion  of  such 
contract  for  a  period  not  to  exceed  ten  days, 
without  relinquishment  of  his  privilege  of 
reporting  the  unfulfilled  obligation  to  the 
chairman  of  the  Exchange. 

SEC.  4.  A  transaction  made  buyer  3  shall 
mature  at  2  o'clock  on  the  third  business  day 
thereafter.  The  seller  in  such  transactions 
must  deliver  the  securities  involved  any  time 
within  the  three  days  if  the  same  are  demanded 
by  the  purchaser. 

Sec  5.  A  transaction  made  seller  j  shall 
mature  at  2  o'clock  on  the  third  business  day 
thereafter.  The  seller  in  such  transactions  may 
deliver  the  securities  involved  any  time  within 
the  three  days  to  the  purchaser. 

SEC.  6.  Bonds,  to  be  a  good  delivery,  must  be 
tendered  in  denominations  of  five  hundred  or 


Sg-Uaroa  25 

one  thousand,  unless  otherwise  specified,  and  so 
recorded  by  the  Secretary  at  the  time  of  sale. 

SEC.  7.  Stock  must  be  delivered  in  certificate 
of  exactly  the  number  of  shares  purchased,  or  of 
smaller  certificates  aggregating  that  amount. 
The  purchaser  may  in  all  cases  require  the 
seller  to  guarantee  the  signature  of  the  assign- 
ment of  any  certificate  delivered,  or  the  signa- 
ture to  any  detached  power  of  attorney  accom- 
panying either  stock  or  bonds. 

SEC.  8.  The  signature  to  the  assignment  of 
stock  must  correspond  with  the  name  as  written 
upon  the  face  of  the  certificate  in  every  par- 
ticular and  must  be  guaranteed  by  a  member 
of  the  Exchange  to  be  a  good  delivery. 

Sec.  9.  No  stocks  or  bonds  shall  be  consid- 
ered a  good  delivery  that  bear^any  other  writ- 
ing, stamps  or  marks  than  those  necessary  to 
make  a  legal  transfer. 

Sec.  10.  Securities  in  the  name  of  or  signed 
by  an  Executor,  Administrator,  Trustee,  Guardi- 
an or  any  other  person  acting  in  a  fiduciary 
capacity  shall  not  be  a  good  delivery. 

SEC.  11.  All  stocks  and  registered  bonds  sold 
shall  be  considered  as  carrying  the  dividend  or 
interest  unless  before  the  call  of  said  stocks  or 
bonds  the  chair  has  announced  the  fact  of  their 
being  ex-dividends  or  interest  and  same  has 
been  properly  marked  on  the  board  by  the 
marker  in  charge. 

Sec  12.  Stock  delivered  in  due  order,  while 
the  transfer  books  are  open  and  in  ample  time 
for  transfer,  relieve  the  seller  of  all  responsi- 
bility for  subsequent  dividends. 


26  Uaaljtngion  &tnrk  Sxrljattgp 

ARTICLE  VI 
Contracts  for  Future  Delivery 

Section  i.  No  contract  for  the  purchase  or 
sale  of  securities  for  a  period  greater  than  ninety 
days  shall  be  made  on  the  Exchange. 

SEC.  2.  All  contracts  for  the  future  delivery 
of  stocks  or  bonds  shall  be  construed  as  vesting 
ownership  in  the  purchaser  subject  to  his  per- 
formance of  the  terms  of  the  contract.  All 
privileges  or  penalties  accruing  during  the 
contract  period  shall  be  exercised  by  the  seller 
for  the  account  of  the  purchaser.  In  cases 
where  rights  of  subscription  to  new  stock  accrue 
and  lapse  during  the  contract  period  the  buyer 
must  in  every  case  give  due  and  proper  notice 
to  the  seller  of  his  wishes  in  the  matter. 
Money  advanced  by  the  seller  in  subscribing 
to  new  stock  shall  be  added  to  the  original  con- 
tract sum  with  a  like  rate  of  interest.  Assess- 
ments or  subscription  installments  falling  due 
within  the  contract  period  shall  be  the  subject 
of  special  direction  from  buyer  to  seller,  and 
advances  made  thereunder  shall  be  added  to 
the  original  selling  price  with  interest. 

SEC  3.  All  buyers'  options  shall  bear  interest 
at  the  rate  of  five  per  cent  per  annum  unless 
prescribed  by  the  Governing  Committee. 

SEC.  4.  Sellers'  options  shall  not  bear  inter- 
est unless  otherwise  specified. 

ARTICLE  VII 
Section  i.  In  all  cases  of  an  application  for 
the  original  listing  of  the  stock  of  any  corpora- 
tion on  the  Washington  Stock  Exchange  it 


Ug-ICattia  27 

is  required  that  there  shall  be  filed  with  the 
Secretary  of  the  Exchange  a  statement  of  the 
corporate  name  of  said  corporation  and  the 
authority  under  which  it  exists  ;  the  amount  of 
its  capital  stock  (which  shall  not  be  less  than 
$100,000)  and  the  number  of  shareholders 
among  whom  it  is  divided,  which  number  shall 
be  not  less  than  twenty-five  holding  a  quotation 
lot  or  more ;  the  number  of  shares  into  which 
the  said  capital  stock  is  divided  and  the  par 
value  thereof ;  whether  the  same  is  fully  paid 
and  non-assessable,  a  list  of  officers  and  direc- 
tors of  said  corporation  ;  the  location  of  the 
office  of  the  company,  its  transfer  office  and  by 
whom  registered  ;  and  if  there  be  outstanding 
bonds  the  amount  and  character  thereof  must 
be  fully  set  forth  and  such  other  information  as 
may  be  called  for  by  the  Governing  Committee. 
SEC.  2.  All  applications  for  the  listing  of 
bonds  must  give  the  amount  of  the  issue,  which 
shall  not  be  less  than  $100,000,  divided  among 
at  least  twenty-five  holders ;  the  date  and 
maturity  thereof;  the  nature  of  the  security 
upon  which  the  same  are  issued  ;  the  denomi- 
nation of  the  bonds  ;  the  rate  of  interest  and  the 
place  of  payment  of  both  interest  and  principal; 
whether  redeemable  before  maturity  or  not ; 
and,  if  so,  on  what  terms  and  at  what  time  ; 
whether  secured  by  a  sinking  fund ;  whether 
registered  or  not,  and,  if  so,  where  and  a  full 
description  of  the  property  upon  which  same 
are  issued.  But  in  no  case  shall  any  issue  be 
listed  unless  all  prior  bonds  issued  by  the  cor- 
poration and  then  outstanding  shall  have  been 
listed.     Provided,   however,   that    in   no    case 


28  Staflltington  g»tork  Exrhangr 

shall  any  securities  be  listed  when  an  objection 
has  been  filed  by  the  corporation  whose  securi- 
ties it  is  proposed  to  list. 

SEC.  3.  All  applications  for  the  listing  of 
stocks  or  bonds  shall  be  posted  by  the  Secre- 
tary upon  the  bulletin  board  of  the  Exchange 
for  a  period  of  seven  days  before  receiving  the 
action  of  the  Governing  Committee. 

SEC.  4.  In  all  cases  for  the  original  listing  of 
stocks  or  bonds  a  listing  charge  of  One  Hun- 
dred Dollars  is  required,  which  amount  shall 
accompany  each  application. 


1Bg-2Im»8  29 


RATES  OF  COMMISSIONS 


Bonds 

Gov't  and  D.  C.  3.65s  per  $100 I2^cts. 

Other  bonds  per  $100 25    cts. 

Stocks 

Stocks    selling     under    $5.00    per    share, 

3^jcts.  per  share. 
Stocks  selling  at  $5.00  and  under  $10.00, 

6X  cts.  per  share. 
Stocks  selling  at  $10.00  and  under  $50.00, 

12^  cts.  per  share. 
Stocks  selling  at  $50.00  and  under  $150.00, 

25  cts.  per  share. 
Stocks  selling  at  $150.00  and  over,  50  cts.  per 

share. 


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